Chongzhen revived the Ming Dynasty

The fact that shipping 30 million shi could achieve the same effect as shipping 40 million shi made the ministers very excited. They all realized that reducing losses was a big deal and could greatly reduce the burden on the people.

Although Zhai Fengchong and Dong Yingju felt a lot of pressure, they had to assure the emperor that they would reduce the losses.

Zhu Youjian forced them to make a promise on the spot and come up with a new storage and transportation plan in line with the tax system.

The Statistics Department behind the scenes once again played a role, allowing Zhu Youjian to achieve the same effect while reducing the tax amount.

However, this was not enough. As Han Yu said, the frontier troops would use up all the money and food, and the court would have to levy more taxes.

Minister of Revenue Bi Ziyan said:

"Although many areas in the north have been hit by disasters, there are still places with good weather and good harvests. I think we can collect grain from these places and use it for disaster relief."

"The tax on government farmland can be set at two dou, which remains unchanged. The tax on private farmland can be reduced to one dou, and in areas near the frontier and outside the frontier, it can be reduced to five liters, and miscellaneous grains can be used to pay taxes."

"In Shandong, where farmland is relatively good, there are more than 60 million mu and in northern Zhili, more than 50 million mu. It is estimated that 5 million to 10 million dan of grain and a certain amount of silver can be collected each year. The silver can be used for the salaries of local officials, and the grain can be used for disaster relief."

Zhu Youjian nodded in approval and instructed:

"Tax grain from the north can be used for disaster relief and for the needs of disaster victims on their way to migration, based on the principle of proximity."

“We need to consider the overall situation and ask the disaster relief committee to come up with a plan.”

"The government finances cannot rely solely on agriculture in the future. My opinion is to vigorously develop industry and commerce."

Talking about his own method, Zhu Youjian said:
"In the early Song Dynasty, industrial and commercial tax revenue accounted for 70% of the total, and was the main source of fiscal revenue."

"I don't ask for this number to be reached all at once, but even if it only reaches 30%, it can largely solve the current financial difficulties."

"Bi Qing, can you tell me, besides the land tax, what is the proportion of other taxes in the current court?"

Bi Ziyan said:

"Ninety percent of the court's revenue comes from land tax, and the rest accounts for less than 10 percent."

"Among these, the salt tax accounts for the largest proportion, reaching 7%. The customs duty accounts for 2%, and the total is 9%. "

"The income from other miscellaneous courses is only one percent!"

When this number came out, the ministers were shocked and couldn't believe it.

They know that there are fish taxes for fishing, stamp duties for signing contracts, and even taxes for entering and leaving the city gates...

These heavy taxes have always been the focus of criticism from the ministers. In order to gain fame, some ministers often petitioned the court to reduce the heavy taxes. However, they never expected that all the miscellaneous taxes together only accounted for one percent of the fiscal revenue.

This was really hard for them to believe: after so many taxes and levies, they only collected such a small amount of money.

Xu Guangqi asked:
"Minister Bi, is this all the income from miscellaneous lessons?"

“Why do I feel like there are so many taxes and levies?”

Bi Ziyan smiled bitterly and said:
"that's it!"

"This is the statistics made by our Ministry of Households based on historical data."

"For example, Suzhou, a place with thriving commerce, only collects more than 10,000 taels of industrial and commercial tax every year."

"In the pre-Song Dynasty, the number was more than 700,000!"

The gap of more than seventy times left the ministers completely speechless.

At the same time, this also confirms what the emperor said. The former Song Dynasty's industrial and commercial taxes accounted for 70%, while this dynasty is far inferior.

The total amount of salt tax, customs duty and miscellaneous taxes only accounts for 10%.

Zhu Youjian said:
"Scholars, farmers, merchants and artisans are the four classes of the country."

"If craftsmen and merchants want to truly become the four classes and have the same status as farmers in the parliament, they must pay more taxes to the country."

"I hope that in the future, industrial and commercial taxes will exceed two-thirds, and that craftsmen and merchants can stand together with farmers and have the same proportion of seats in parliament."

This was a major issue concerning the distribution of power in the re-establishment of rituals and music, and the ministers were unable to voice any objection.

The idea that all four classes are fundamental is not a new one. Wang Yangming had already proposed a new theory of the four classes. In fact, since many scholars were engaged in business, they had been calling for this.

However, some people do not want industrialists and businessmen to bear corresponding taxes in order to gain status.

The Prime Minister Han Yu said in a tactful way:
"Industrial and commercial taxes can be increased, but the heavy taxes and levies imposed on the people are now causing widespread complaints."

"I think we should be cautious."

Zhu Youjian took a look at him and knew that there were many Shanxi businessmen behind him, and they were big businessmen. So he said:
“We should be cautious indeed.”

"My opinion is not to disturb the people. Instead of increasing taxes on the common people, we should reduce them."

"We will implement a step-by-step taxation system similar to the property tax."

"Bi Qing, can you tell me how to collect industrial and commercial taxes?"

Bi Ziyan had been preparing for this matter for a long time, and immediately responded upon hearing this:

"I think that the collection of industrial and commercial taxes should be classified according to the turnover and can be called business tax."

"Those who employ less than ten people and have only a single-digit number of staff can be called self-employed. As long as they register with the government or the self-employed association, they can operate freely."

"For self-employed individuals whose annual turnover does not exceed one hundred yuan, no tax will be levied on them. Only fees for sanitation and fire protection will be collected according to the needs, and the total will not exceed two percent or two yuan."

"This fee is entirely levied locally, it is a local tax and it is determined by the local council."

"Business tax is a tax shared by the imperial court and local governments, and is shared in proportion to the tax-sharing system."

After distinguishing the self-employed, Bi Ziyan continued:

"All industrial and commercial enterprises with a turnover of more than 100 yuan must register with the government's industrial and commercial institutions, assume public obligations, and pay business taxes to the court."

"The tax rate is set at 3%, which is slightly lower than the previous commercial tax rate of 1% to 30%.

"A self-employed person with a turnover of more than 100 yuan but employing no more than 10 people can be called a micro-enterprise."

"A business with a turnover of 100 to 10,000 yuan, fewer than 200 employees, and less than 200 acres of land can be called a small business."

"These small and micro enterprises are the most common and are most related to the livelihood of ordinary people. Their tax rate is set at 3%."

"The imperial court encouraged the development of small and micro businesses, encouraged employees to freely choose their jobs, and prohibited the use of slaves."

The last point is mainly aimed at the wealthy families in Jiangnan. Zhu Youjian investigated the textile industry in Jiangnan and found that although there were sprouts of capitalism in Jiangnan, it could not be called capitalism at all. Some industrial and commercial owners directly used slaves to work, which was like a slave society.

This is undoubtedly not conducive to technological development or fair competition. In order to break this situation, allow capital and personnel to flow freely, and make the market active, Zhu Youjian took advantage of the slaves' protest in Suzhou to directly prohibit enterprises from using slaves, formulate labor laws, and give workers the right to freely choose their jobs.

At the same time, in order to increase market vitality, he was also very lenient towards small and micro enterprises, charging a business tax of only 3%, which was very low.

Especially for self-employed individuals with a turnover of less than 100 yuan, they are directly exempt from tax. They don’t even need to deal with the government when starting a business, they can just go to the self-employed association to complete the registration.

If they encounter extortion or arbitrary tax collection, they can also rely on the individual business association to protect their own rights and interests.

Various miscellaneous taxes and levies would also be abolished. Zhu Youjian did not want the people to complain about the collection of a few miscellaneous taxes, and he did not want the tax officials to manipulate the tax system and waste their energy on these matters.

This meant that most industrialists and businessmen would not be affected, and all the ministers nodded, thinking that this was a good idea.

But this makes some people wonder:

Where did the court’s increased industrial and commercial taxes come from?
The answer is of course larger enterprises, Bi Ziyan said:
"If a company has a turnover of 10,000 yuan, employs 200 people, or occupies 200 mu of land, as long as one of the following conditions is met, it can be called a medium-sized enterprise, and the business tax will be increased to 5%. If two conditions are met, the business tax will be increased to 6.5%, and if three conditions are met, it will be 8%."

"For large companies that meet the requirements, with a turnover of 100,000 yuan, 1,000 employees and 1,000 acres of land, the business tax is 10, 13 and 16 percent. If they pay 10 percent in dividends to employees as required by listed companies, they will only be taxed 11 percent."

"For larger enterprises with a turnover of more than one million yuan, the business tax is set at 20%. If 10% is distributed as dividends to employees and the court or local government uses the tax revenue or land it deserves to take up 10% of the shares, so that the public shares reach 20% or more, then only 11% of the tax will be levied."

"Any enterprise that meets any one of the following conditions, such as a turnover of 10 million yuan, 10,000 employees, or 10,000 acres of land, can be called a giant enterprise, or a giant enterprise for short, such as Daming Shipping Group."

"The public ownership of a giant enterprise must be more than one-third, and the imperial court must supervise it and have a veto over important decisions that affect the public interest. Only then can it be taxed at the 10th percentile rate. Otherwise, a business tax of 30 to 40 percent will be imposed."

"Enterprises with a turnover of 10 million yuan, 100,000 employees, and 100,000 mu of land are called extremely large enterprises, or super-large enterprises for short. The public shares must account for more than half, otherwise the business tax will be levied at 40% to 50%."

"For each additional digit, the percentage of public shares must increase by 10%, otherwise the business tax will increase by 10%. This will last until the company is 100% publicly owned, and the original shareholders will be included in the employee dividends."

"The imperial court encourages public-private partnerships and uses dividends to replace taxes. This allows the dividends of industrial and commercial development to be shared, and also reduces the burden on enterprises. It allows large enterprises to assume corresponding obligations while participating in competition at the same tax rate."

"In the future, when public shares reach a certain level, we can also realize complete public ownership and move towards a world of great harmony!"

This long speech made some of the ministers nod their heads repeatedly, while others were speechless:
They could all hear that this measure definitely came from the emperor.

When the emperor formulated the property tax, he was considering what to do if someone had millions of assets. Now, he is taking into account companies with millions of assets.

The ministers didn't even dare to think about such a thing, and no one except the emperor ever mentioned it.

At this time, after thinking that this plan came from the emperor and the Minister of Finance, most of them were in no mood to object. They were more thinking:

Can such a complicated tax rate be levied? And how can the court confirm the size and level of these enterprises?

The answer is of course to let these companies report voluntarily, Bi Ziyan said:
“All companies that meet the standards should proactively declare and pay the corresponding taxes.”

“If tax evasion is discovered, the tax must be paid at the prescribed rate and a fine of one to two times the tax rate will be imposed.”

"We will also issue a warning to the corporate legal person and the board of directors, the board of supervisors, and the top five shareholders who hold more than 5% of the shares. We will randomly select two to five people based on the degree of their violations and deprive them of their citizenship."

This measure shocked all the officials, who knew that the punishment was extremely severe.

They all knew that the court was reorganizing rituals and music, and they were clear that the emperor really wanted to rule the world with the people.

Who are the "ten thousand people"? They are the citizens who bear public obligations according to the rules of propriety and law, which is equivalent to the people of the Zhou Dynasty.

If a person is deprived of his citizenship, even if he is not demoted to a pariah, he will lose his political rights such as holding an official position and being elected, and will become a marginalized person like the barbarians of the Zhou Dynasty, and may even become a slave.

This punishment is too severe and uncertain. Some officials objected:

“Isn’t this punishment too severe?”

“And some people may be kept in the dark and evade taxes without knowing it?”

Before Bi Ziyan could answer, Zhu Youjian said:
"Nothing serious!"

"The board of directors, the board of supervisors and the corporate legal person have this responsibility."

"The major shareholders are the beneficiaries and should also bear the responsibilities."

"I remind you once again that paying taxes and serving in the military are the two major obligations of Ming citizens."

“If anyone refuses to fulfill his obligations, his citizenship will be revoked.”

He glanced at the crowd and said:
"The imperial court's tax collection method is imperfect, and some people find loopholes to evade taxes."

“So we implemented a proactive reporting system, stipulating that everyone has the obligation to proactively pay taxes.”

"The punishment for these people is a warning to those who evade taxes: you are risking your citizenship!"

This made the ministers feel solemn, knowing that the current emperor was able to do what he said and really valued taxation.

This sentence can be regarded as a repeated warning, requiring subjects to fulfill their tax obligations.

However, proactive reporting is not perfect, so Han Yu raised an objection:

"Nowadays, there are more and more types of taxes. Ordinary people have no idea how much tax they should pay?"

"If someone accidentally fails to file a tax return, should their citizenship be revoked?"

Zhu Youjian said:

"Officials pay taxes based on the property they declare. Officials of the ninth rank receive a salary of 60 yuan. Individuals with an annual income of less than 60 yuan and self-employed individuals with a turnover of less than 100 yuan are not required to pay attention to them. The court does not require them to take the initiative to pay taxes, which reduces the burden on ordinary people and also reduces the burden on tax agencies."

"Individuals with an annual income of more than 60 yuan, or companies with an annual turnover of more than 100 yuan but less than 10,000 yuan, need to hire an accountant or tax accountant and take the initiative to declare and pay taxes with their help."

"Those with annual income or turnover exceeding 10,000 yuan must hire a professional tax accountant to file their tax returns and be audited."

"The court will send tax officials to conduct random inspections, collect statistics and screen the overall data, and focus on investigating companies and individuals with abnormal data. When there is a shortage of personnel, tax offices and auditing firms can be commissioned to conduct investigations and audits. A certain percentage of bonuses will be given to those who recover the taxes."

"Accountants, tax agents, and auditors all need to be assessed like lawyers, and only after obtaining a professional qualification certificate can they work in the industry, and they will be responsible for the tax returns they handle for life."

"How to test the three professions and how to train practitioners will be determined by the Ministry of Revenue and the Imperial Household Supervision and Industrial and Commercial School together."

These were all preparations made by Zhu Youjian for collecting industrial and commercial taxes. The officials of the Ministry of Revenue welcomed this, as it increased their power and made it easier to collect taxes.

Zhu Youjian added several professions with entry requirements, so that scholars in the world had more options besides serving as officials.

The 600,000 scholars mentioned by Zhang Pu have always been a concern for him. The current situation of these people being unemployed has become a problem in many places. The root cause of the students' unrest that has troubled local officials is that many scholars are actually unemployed, and they must cause trouble to attract attention.

Zhu Youjian had already recruited many scholars to study at the university, and now he had to help them find jobs. Various professional qualification examinations were currently mainly for scholars, and they would be considered to expand their scope in the future.

As for the burden that adding accountants and tax accountants will impose on individuals and companies, that is not a concern. After all, wealthy individuals and companies should not care about the cost of hiring them. (End of this chapter)